5. 9.10 Leroy purchased an AI-based robotics system with a first cost of $345,000, an AOC of...

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5. 9.10 Leroy purchased an AI-based robotics system with a first cost of $345,000, an AOC of $148,000 per year, a $140,000 salvage value, and an ESL of 3 years. Rather than trading after 3 years, he kept the system for a total of 5 years. Due to the wear factor and expense of repairs, its AOC increased to $240,000 per year starting in year 4, plus the salvage value went to zero. At i = 10% per year, what is the percentage increase in the AW of costs that Leroy experienced?

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Basics Of Engineering Economy

ISBN: 9781259683312

3rd Edition

Authors: Leland T. Blank, Anthony Tarquin

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